Saturday, November 10, 2018

THE GALL: Bernanke Says the Fed Needs System to Bailout Shadow Banks

Remarkable. Former Federal Reserve Chairman Ben Bernanke wants to add to the types of financial institutions that the Federal Reserve can loan money out to during Fed-created financial crises.

Bernanke said at a conference at New York University on Friday that the Fed needs to have expanded powers to lend to institutions that are not commercial banks, which is the only industry that the central bank can offer emergency funds to as a “lender of last resort,” reportsYahoo Finance.

That tool, Bernanke said, needs to be extended to cover shadow banks like broker-dealers and other non-bank institutions that could prove systemic in the next financial downturn.

“I fear they are not fully adequate,” Bernanke said of the Fed’s regulatory powers.

I'm sure it's all coincidence but Bernanke now is an adviser to two such shadow banks.

He is a senior adviser at Citadel, a $25 billion hedge fund, and also a senior adviser at Pimco.

8 comments:

To add a bit of humor to this sad state of affairs, Columbia business school students did a clever and well done satire of Bernanke’s appt as FED chairman to the Tune of “Every breath you take”. The narrator in the song is the business school president who was passed over for the job.

It cracks me up how these losers walk around thinking they are capitalists and this is capitalism. Why dont these clowns get laughed out of polite society? They must have friends and famiky.... are any of them embarrassed? I have never seen a video of a calm, well-dressed man in a suit mocking these people to their faces. Why not? They all just little droklings hiding behind the guys with guns. Belittle them in front of the cute girls and make them cry. Why does no do this? Who actually respects these people? Is everyone just afraid of them?

Yes, also me have about this frequently thought: in particular in another different historic contest; why these Ebrews allowed these Nazi take them into the Auschwitz area in the first instance before, directly from their home to the Ghetto and later, to Auschwitz,Poland? Surely they couldn't fathom a so bloody bastard was in charge in Germany in that moment but why no one punched significantly against men who, in that very moment realized a total unrequested undesirable and violent change in their private life? Believed something, moving against their actual oppressors in the unlucky Ebrews groups, like to risk to loose too much individually showing a proper individualistic answear against these bloody bastards? Like Jordan Peterson in a recent video of a conference at Cambridge Union Society answear..it is very important to train exercise prove the good ones or disprove the bad ones of your opinions with the reality check of discussing them publicly among other people also to learn never abdicate your individual responsibility to explicitly condemn the bad ideas proposed and circulated in your time, nip in the bud the political propaganda when installing indvidual freedom..not necessarily your one goes unrespected!Dom 11.11.18 07.20